1. FINANCING OF INNOVATIVE ACTIVITY IN THE RUSSIAN FEDERATION Yu.V. Chebotarevskiy Saratov State Technical University Saratov, Russia

2. Saratov State Technical University 2 Figures of Readiness of Enterprises in Different Branches of Industry to Assimilation of Innovation Products (in % to number of interviewed) Branches of IndustryNumber of Enterprises (%) Mechanical Engineering87 Ferrous Metallurgy81 Chemistry and Petrochemistry68 Light Industry67 Food Industry62 Building Industry45 Non-ferrous metallurgy43 Timber industry complex (without Furniture Manufacture) 43 Furniture Manufacture76

3. Saratov State Technical University 3 Barriers to development of new production in 2001-2008 (in % to number of interviewed) List of Barriers Quantity of Enterprises (%) 2001-022003-042005-062007-08 High costs necessary for the beginning of manufacture of new production 73726365 High transport costs 1520711 Impossibility of fast achievement of scales of manufacture and selling, providing profitableness 46473843 Competitive Advantages of possessors of unique sources of raw material, energy, technologies, patents, licenses 15191420

4. Saratov State Technical University 4 The Main Sources of Direct Financing of Innovation Activity in the Russian Federation Budget Funds  Funds of the Federal Budget  Funds of Budgets of the Subjects of RF  Funds of the Local Budgets (Budget Funds of Municipal Units) Off-budget Funds  Own Funds of Enterprises  Funds of Investors (Obtained Funds)  Borrowed Funds  Funds of International Programs and Grants

5. Saratov State Technical University 5 Scheme of the Budgetary Financing of Innovation Activity in the Russian Federation Federal Innovative Programs Contracts on Fulfillment of the State Order State Scientific-Technical Programs International Projects and Programs Russian Foundation for Basic Research (RFBR) Guarantees, Financial Provision of Initiative Perspective Projects and Research Russian Foundation of Humanitarian (RFH) Foundation for Assistance to Small Innovative Enterprises (FASIE) Federal Foundation of Production Innovations (FFPI) Academic Sector of Science and Higher Education Establishments Budgetary Estimate of Expenditure for Maintenance of Federal Public Establishments and Unitary Enterprises State Research Centers and Laboratories Maintenance of Unique Objects of Development and Experimental Investigation Objects of Budget Financing Priority National Research Programs Target Budget Foundations Basic Financing of Strategic Core

6. Saratov State Technical University 6 Federal Target Program “R esearch-and-development activities of Priority Directions of Development of Scientific and Technological Complex of Russia on 2007-2012” State Customer and Coordinator of the Program Ministry of Education and Science of the Russian Federation The Main Objective of the Program Development of Scientific – Technological Potential of the Russian Federation with a view to Realize of Priority Directions of Development of Science, Technology and Techniques in the Russian Federation Period and Stages of the Program Realization 2007- 2012 Including The 1st Stage – 2007- 2009 The 2nd Stage – 2010- 2012 Amount and Resources of the Program Financing Total 2007- 2012 (in the Prices of Corresponding Years) Is Provided - 194,89 bln. rubles, Including at the expense of the Federal Budget – 133,83 bln. rubles, from them: to Research-and-Development Activities – 128,39 bln. rubles; to Capital Investments – 5,44 bln. roubles; Off-budgetary Funds – 61,06 bln. Roubles

7. Saratov State Technical University 7 The Most Important Target Indicators and Figures of the Federal Target Program “Research-and-Development Activities of Priority Directions of Development of Scientific and Technological Complex of Russia on 2007-2012”  Supplementary of New and Improved High-Technological Production in the Volume of 142 - 150 bln. rubles at the cost of Commercialization of Created Progressive Technologies;  Supplementary Export of High-Technological Production in the Volume of 39 – 44 bln. rubles;  Attraction Off-budgetary Funds in the Volume of 59 – 62 bln. rubles;  Supplementary Increase of Internal Expenditures for Research and Elaborations, including Off-budgetary Funds in the Volume 169 - 172 bln. Rubles;  Elaboration of 127 – 136 Competitive Technologies assigned for Commercialization;  Manufacturing application of 8 - 10 Progressive Commercial Technologies;  Introduction of 5 – 8 Critical Technologies, with the Russian Federation World Priority;  Creation of 6-12 New Organizations, equipped by the World Level Instrument Scientific Basis;

8. Saratov State Technical University 8 Figures Unit 200720082009201020112012 Growth of Gross Domestic Product at the expense of Realization of the Action of the Program pct 0.0230.0210.0120.018 Portion of External Expenditures on Research and Development in the Gross Domestic Product Percent 1.591.631.661.71.741.79 Growth of Portion of External Expenditures on Research and Development in the Gross Domestic Product pct 0.050.06 0.070.080.09 Portion of Non-budget Funds in External Expenditures on Research and Development Percent 45.545.846.246.546.947.3 Growth of Portion of Non-budget Funds in External Expenditures on Research and Development pct 0.70.811.11.21.3 Portion of High-Technological Production in the Total Volume of Export Percent 5.235.986.837.808.9110.18 Growth of Portion of High-Technological Production in the Total Volume of Export pct 0.030.060.080.110.140.18 Portion of Russian High-Technological Production in the World Market of High-Technological Production Percent 0.3630.3690.3920.4240.4580.494 Growth of Portion of Russian High-Technological Production in the World Market pct 0.0020.004 0.0060.0070.009 Macroeconomic Figures of Economic Effectiveness of Realization of the Federal Target Program “Research-and-Development of Priority Directions of Development of Scientific-Technological Complex of Russia on 2007-2012”

9. Saratov State Technical University 9 Microeconomic Figures of Economic Effectiveness of Realization of the Federal Target Program “Research and Development of Priority Directions of Development of Scientific-Technological Complex of Russia on 2007-2012” FiguresUnit200720082009201020112012 Portion of Innovative – Active Enterprises in the general number of Enterprises of Industry Percent 13.614.815.416.21718 Growth of Portion of Innovative – Active Enterprises in the general number of Enterprises of Industry pct 1.11.81.92.22.83.6 Portion of High-Technological Production in the volume of Manufacturing Production Percent 8.89.239.6710.1410.6211.12 Growth of Portion of High-Technological Production in the total volume of Manufacturing Production pct 0.040.060.080.090.110.12 Average Age of Machines and Equipment of an Organization of Scientific Sphere Participating in Realization of the Program years 19.619.218.718.217.616.8 Change of Average Age of Machines and Equipment of an Organization of Scientific Sphere Participating in Realization of the Program years -0.4-0.9-1.4-2-2.8-3.7

10. Saratov State Technical University 10 Scheme of the Budgetary Financing of Innovation Activity in the Russian Federation Federal Innovative Programs Contracts on Fulfillment of the State Order State Scientific-Technical Programs International Projects and Programs Russian Foundation for Basic Research (RFBR) Guarantees, Financial Provision of Initiative Perspective Projects and Research Russian Foundation of Humanitarian (RFH) Foundation for Assistance to Small Innovative Enterprises (FASIE) Federal Foundation of Production Innovations (FFPI) Academic Sector of Science and Higher Education Establishments Budgetary Estimate of Expenditure for Maintenance of Federal Public Establishments and Unitary Enterprises State Research Centers and Laboratories Maintenance of Unique Objects of Development and Experimental Investigation Objects of Budget Financing Priority National Research Programs Target Budget Foundations Basic Financing of Strategic Core

11. Saratov State Technical University 11 Target Budget Foundations for Financing Research-and-Development Activities Russian Foundation for Basic Research – RFBR The Main Objectives of Foundation:  Support of scientific projects, offered by independent scientists either their creative groups or the whole scientific organizations in the initiative way.  The projects which have won competition get irretrievable losses financing on the grant base;  Support of material and technical basis of basic research by allocating of assets for equipments purchase. Russian Foundation of Humanitarian – RFH  The foundation is focused on support of humanitarian scientific researches. Foundation is created by 1% of rate from the federal budget Expenditures to developing of civil science.  The main objectives are the same as of Russian Foundation of Basic Research. Federal Foundation of Production Innovations - FFPI  The foundation is created at the contribution of state investments, provided annually in the Federal Investment Program (a special note) at the rate of 1,5 % from state centralized capital investments. The Main Objectives of Fund:  Financing and construction, reconstruction and modernization of science intensive production;  Creation of unique research and experimental facilities;  High risk financing of innovative science intensive production.

12. Saratov State Technical University 12 Facts on Financing of RFBR by the State Budget Changes of RFBR Budget from 1993 to 2007 Thousand rbl.

13. Saratov State Technical University 13 Distribution of Finances to the Types of Activities in 2007 Support of Material and Technical Basis 6,7% Youth Competitions 2,8% Program “Scientific Electronic Library” 4,5% Special Support of Research Activities 2,4% Oriented Basic Research 7,9% Joint Competitions with the Departments of RF 3,4% Regional Competitions and Competitions with CIS Members 5,6% Maintenance of Functioning of Staff, Including Expertise Initiative Scientific Projects and Other Competitions of RFBR 59,9% International Competitions 4,5%

14. Saratov State Technical University 14 Distribution of Funds between Spheres of Knowledge to the Types of Activity “Initiative Scientific Projects” and Other Competitions of RFBR in 2007 Mathematics, Mechanics, Information Science 9,5% Physics, Astronomy 19,8% Chemistry 13,0% Basic Research in Engineering 13,9% Biology, Medicine 18,9% Sciences about Earth 14,6 Sciences about Individual and Society 4,3% Information and Computational Resources, Telecommunication 6,0%

15. Saratov State Technical University 15 Target Budget Foundations for Financing Research-and-Development Activities Russian Foundation for Basic Research – RFBR The Main Objectives of Foundation:  Support of scientific projects, offered by independent scientists either their creative groups or the whole scientific organizations in the initiative way.  The projects which have won competition get irretrievable losses financing on the grant base;  Support of material and technical basis of basic research by allocating of assets for equipments purchase. Russian Foundation of Humanitarian – RFH  The foundation is focused on support of humanitarian scientific researches. Foundation is created by 1% of rate from the federal budget expenditures to developing of civil science.  The main objectives are the same as of Russian Foundation of Basic Research. Federal Foundation of Production Innovations - FFPI  The foundation is created at the contribution of state investments, provided annually in the Federal Investment Program (a special note) at the rate of 1,5 % from state centralized capital investments. The Main Objectives of Fund:  Financing and construction, reconstruction and modernization of science intensive production;  Creation of unique research and experimental facilities;  High risk financing of innovative science intensive production.

16. Saratov State Technical University 16 Target Budget Foundations for Financing Research-and-Development Activities Sources of formation:  Budgetary assignment at a rate of 1,5 % from the funds stipulated annually in the budget on financing of civil science;  Arrivals from foundation activities in the form of repayable means, which had been acted under the contracts. Foundation supports in following forms:  Grant on a repayable and irretrievable base.  The foundation can act as a depositor or guarantor under obligations of small firms.  It can act as a co-founder in creation of new small innovative firm (up to 25 %). Conditions of grant support:  Presence of intellectual property at a firm;  Substantiation of presence of the solvent market;  Presence of organizational opportunities on realization of the project. . The part of foundation means in realization of the project should not be more than 50 %. Amount of financing is not more than 2 mln. rubles Foundation for Assistance to Small Innovative Enterprises FASIE

17. Saratov State Technical University 17 Scheme of the Budgetary Financing of Innovation Activity in the Russian Federation Federal Innovative Programs Contracts on Fulfillment of the State Order State Scientific-Technical Programs International Projects and Programs Russian Foundation for Basic Research (RFBR) Guarantees, Financial Provision of Initiative Perspective Projects and Research Russian Foundation of Humanitarian (RFH) Foundation for Assistance to Small Innovative Enterprises (FASIE) Federal Foundation of Production Innovations (FFPI) Academic Sector of Science and Higher Education Establishments Budgetary Estimate of Expenditure for Maintenance of Federal Public Establishments and Unitary Enterprises State Research Centers and Laboratories Maintenance of Unique Objects of Development and Experimental Investigation Objects of Budget Financing Priority National Research Programs Target Budget Foundations Basic Financing of Strategic Core

18. Saratov State Technical University 18 Resources of Non-budget Financing of Innovative Projects Own Funds of Enterprise  Reinvested Part of the Profit ( Development Fund for Manufacture);  Capital Allowances (Reserve for Depreciation);  Insurance Sums of Damage;  Fictitious Assets Obtained Funds ( Funds of Investors)  Share Issue and Other Securities, emitted by the Subject of Innovative Activity;  Inpayments, Voluntary Donations and Other Means of Natural Persons and Legal Entities on the Irretrievable Basis Borrowed Funds  Commercial and Bank Credits;  Financial Leasing;  Venture Financing

19. Saratov State Technical University 19 Resources of Non-budget Financing of Innovative Projects Availability of Bank Credits to the Industry Branches of Industry and Type of Enterprises Number of Enterprises (in % to quantity of interviewed) Fuel and energy complex 100 Power industry 86 Metallurgy and Mechanical Engineering 79

20. Saratov State Technical University 20 Venture Innovation Fund The main sources of the formation of VIF property  Target fee of the Ministry of Science and Technology of the Russian Federation and the Russian Fund of Technological Development;  Target fee of Foundation for Assistance to Small Innovative Enterprises at the expense of means getting on repayable basis;  Voluntary property fees of domestic investors (funds, banks and so on). Priority directions of investment  The industry of nanotechnology and nano-materials;  Perspective technologies in computer science;  Technologies of alive systems;  Rational nature management;  Perspective and renewable power engineering.

21. Saratov State Technical University 21 THANK YOU!